Question

Required information [The following information applies to the questions displayed below.] Stem Games manufactures playing cards. It has three departments: Printing, Cutting & Collating, and Wrapping. Transferred-in costs are considered materials costs. The following information is available for the Wrapping department for the month of October: Physical Units 283,000 Beginning work in process (100% complete for materials, 80% complete for conversion) Decks transferred in Decks completed and tran to Finished Goods Inventory Ending Work in Process (100% complete for materials, 45% complete for conversion 3,220,000 3,230,000 ? Costs: Beginning work in process: Direct materials Conversion cost Costs transferred in October costs: Direct materials Conversion costs AA $ 200,000 21,000 $1,526,700 $ $ 24,800 716,627 Required: 1. Reconcile the total Cost to Account for the process. 2. Prepare a statement of total cost accounted for the process.

Answer 1

1.

	Direct Materials	Conversion costs	Total costs
Prior period costs	200000	21000	221000
Current period costs	1551500	716627	2268127
Total cost to account for	1751500	737627	2489127

2.

	Direct Materials	Conversion costs	Total costs
Units completed	1615000	710600	2325600
Ending inventory	136500	27027	163527
Total cost accounted for	1751500	737627	2489127

Workings:

Stem Games
Equivalent units		Direct Materials	Conversion costs
Units to account for
Beginning WIP	283000
Started in process	3220000
Total units to account for	3503000
Units accounted for:
Units completed and transferred out
Started and completed	3230000	3230000	3230000
Ending WIP	273000	273000	122850
Equivalent units	3503000	3503000	3352850

	Direct Materials	Conversion costs	Total costs
Prior period costs	200000	21000	221000
Current period costs	1551500	716627	2268127
Total cost to account for	1751500	737627	2489127
Equivalent units	3503000	3352850
Equivalent cost per unit	0.50	0.22